With the amount of gpu they sell this doesn't seem right.


only 1.44 billion...
Someone is pocketing money.

natr0nWith the amount of gpu they sell this doesn't seem right.

only 1.44 billion...
Someone is pocketing money.

That or they sold them with only a small profit

Conference Call is in 1hr 30mins. Q&A portion are always fun to listen too.

I thought they would be doing better than this by now. Granted, it's leveled off from the precarious position from not long ago but it's still not that great.

After Intel's results, this is disappointed at best.

Earnings are flat. No surprise. If you look at the past year, there's been nothing that jumps out at anyone eluding to an increase or decrease.

natr0nWith the amount of gpu they sell this doesn't seem right.


only 1.44 billion...
Someone is pocketing money.

When company's expand its not efficient to declare big profits.

More than likely its for tax reasons, build more infrastructure and expand. Then sell your product at lower margins so you artificially create a loss or a break even on paper.

Also, the previous years AMD made huge losses which are deducted from their profit in the fore-coming years. So the total will be smaller artificially on paper.

Aside from the dump the stock is taking. Some interesting tid bits from the conference call.

• New tech next gen coming late 2016 (CPU/APU/GPU on 20nm) Probably talking about K12 and GCN 3.0
• Currently using 50% of GlobalFoundry wafers
• Seattle to enter production in Q4

They are blaming the Q slow down on the crypto currency dry up and flood of second hand sales of those CPU/GPU into the market.

Dent1When company's expand its not efficient to declare big profits.

Is AMD expanding?
If anything it seems to be contracting. In recent times it has divested itself of its foundry business, it's mobile, baseband, and set top business to Qualcomm and Broadcom, sold its property assets, and just recently made the decision to axe a substantial part of its datacenter infrastructure. It might be expanding into the fast-turnabout ASIC trade, but it is certainly contracting from high margin markets and asset base.

Dent1More than likely its for tax reasons, build more infrastructure and expand. Then sell your product at lower margins so you artificially create a loss or a break even on paper.

A bit of a double edged sword then. Tax breaks aren't guaranteed in perpetuity, and manipulating the P&L to reflect null growth isn't a great incentive to investors. Any idea what the money houses think of this?

XzibitAside from the dump the stock is taking. Some interesting tid bits from the conference call.

• New tech next gen coming late 2016 (CPU/APU/GPU on 20nm) Probably talking about K12 and GCN 3.0
• Currently using 50% of GlobalFoundry wafers
• Seattle to enter production in Q4

They are blaming the Q slow down on the crypto currency dry up and flood of second hand sales of those CPU/GPU into the market.

• New tech next gen coming late 2016 (CPU/APU/GPU on 20nm) Probably talking about K12 and GCN 3.0

WOW! :eek:

What about 16 nm? I thought they shoould have developed something by then. :(

Very long time (at least two more years) until the moment when I will upgrade my PC with new AMD processors and next-gen GPU. :)

AMD, why don't they use Intel's 14 nm production capacity when Intel themselves have problems to fully utilise it and their factories remain idle?

Sony Xperia S

• New tech next gen coming late 2016 (CPU/APU/GPU on 20nm) Probably talking about K12 and GCN 3.0

WOW! :eek:

What about 16 nm? I thought they shoould have developed something by then. :(

Very long time (at least two more years) until the moment when I will upgrade my PC with new AMD processors and next-gen GPU. :)

GCN 3 arrives early 2015 if the Carizzo slide leaked earlier in VR-Zone is to be trusted.

Sony Xperia SAMD, why don't they use Intel's 14 nm production capacity when Intel themselves have problems to fully utilise it and their factories remain idle?

Intel delayed Broadwell again and again and again due to production issue. Period.

So no new gpu/cpu until the last quarter of 2016 most likely. That's good if you just brought amd/radeon gear. This stuff should stay relevant and be running to its peak potential by then

ChampSo no new gpu/cpu until the last quarter of 2016 most likely. That's good if you just brought amd/radeon gear. This stuff should stay relevant and be running to its peak potential by then

Next generation, not no new. Only thing official in 2016 is K12 so far.



I believe they were referring to this^. Since he did name the check list but also said CPU & GPU and mentioned they will be 20nm.

Maybe someone will post the Q&A transcript of the conference call somewhere.

revanchristGCN 3 arrives early 2015 if the Carizzo slide leaked earlier in VR-Zone is to be trusted.




Intel delayed Broadwell again and again and again due to production issue. Period.

Don't say this because it's not true.
All vendors are working on Skylake platforms right now, past Broadwell. Broadwell was not delayed, or any such thing. The desktop drop in chips (socket) for Z97 and the Z107 chipset were pushed forward to Computex 2015, but the mobile and embedded Broadwell parts were brought in closer than originally planned. It was INTEL's partners who wanted Broadwell delayed so they could clear Z87 and Z97 products. Z97 as well was released ahead of schedule.

There is no production issue here, do not write that as it is just plain untrue.

ShockGDon't say this because it's not true.
All vendors are working on Skylake platforms right now, past Broadwell. Broadwell was not delayed, or any such thing. The desktop drop in chips (socket) for Z97 and the Z107 chipset were pushed forward to Computex 2015, but the mobile and embedded Broadwell parts were brought in closer than originally planned. It was INTEL's partners who wanted Broadwell delayed so they could clear Z87 and Z97 products. Z97 as well was released ahead of schedule.

There is no production issue here, do not write that as it is just plain untrue.

Broadwell is supposed to launch in mid-2014 to replace Haswell. Instead, it get delayed and Haswell-Refresh takes it's place. In the end, desktop Broadwell get delayed so much that it will coincide with mid-2015 Skylake launch schedule (quote from multiple sources such as VR-Zone and wccftech etc etc). Mobile Broadwell get postpone into 2014 Back to School season as quoted from Intel earlier. But latest leak shows mobile Broadwell will instead be postponed to December 2014 holiday season. Braswell chip (14nm successor to mobile Bay Trail Atom) which is supposed to be launch by end of 2014 will not see daylight until early 2015. SO do tell me, which part of these is not true, huh?

HumanSmokeIs AMD expanding?
If anything it seems to be contracting. In recent times it has divested itself of its foundry business, it's mobile, baseband, and set top business to Qualcomm and Broadcom, sold its property assets, and just recently made the decision to axe a substantial part of its datacenter infrastructure. It might be expanding into the fast-turnabout ASIC trade, but it is certainly contracting from high margin markets and asset base.


A bit of a double edged sword then. Tax breaks aren't guaranteed in perpetuity, and manipulating the P&L to reflect null growth isn't a great incentive to investors. Any idea what the money houses think of this?

Key share holders are looking the a multitude of small pieces to decipher the bigger picture. They already have a projection (accurate or inaccurate) of projected gross revenue, and net profits for up to decade forecast.

Don't confuse taxable profit with growth. Although taxable profit is a single measure of growth, growth isn't solely taxable profit. For example, if AMD managed to secure an exclusive contract selling processors for Apple iPhone. Their market share would grow significantly in the handheld market, even if they declared a loss financially. The media attention would be huge online and in publications, confidence would be initially so strong there would be a spike increase in AMD share price, thus generating them huge profit just from inking the deal alone. A small decimal share price increase could be more profitable and demonstrate more growth than actually selling the processors.

I don't think money houses care, as long as the interest and capitol on the loan is paid within schedule. They trust AMD knows more about generating profit in their sector than them.

With the datacenter, there is no good reason to have 18 datacenters scattered around the world. They will have 1 huge datacenter in Atlanta with the same capabilities. Thus creating efficiency i.e. Having staff in one location, not having to hire bilingual staff, language issues, logistic issues from transporting hardware etc. This is actually a very good thing long term. The money saved can go back into the business to expand further.

Dent1Don't confuse taxable profit with growth.

Don't confuse what I'm saying with whatever point you're trying to make to paint a rosy picture.
You talk about AMD being an expanding business, when even AMD themselves are talking about trimming the company into a leaner business.
By what definition does this qualify as an expanding company?


Expanding companies also don't see revenue fall by a quarter of a billion dollars in less than three years ($US1.691bn in Q3 2011), don't axe infrastructure, generally don't axe their workforce, or sell off their IP for peanuts.

BTW: AMD providing the processor for the iPhone? Yeah, I think Rory has his R&D rainbow-hued unicorn working on that as we speak.

HumanSmokeDon't confuse what I'm saying with whatever point you're trying to make to paint a rosy picture.
You talk about AMD being an expanding business, when even AMD themselves are talking about trimming the company into a leaner business.
By what definition does this qualify as an expanding company?

HumanSmokeExpanding companies also don't see revenue fall by a quarter of a billion dollars in less than three y
ears ($US1.691bn in Q3 2011), don't axe infrastructure, generally don't axe their workforce, or sell off their IP for peanuts.

I'm not trying to paint a rosy picture, trying to illustrate that growth can be measured in many ways.

All companies trim their business to make it efficient.

If there is a way to do more with less overheads wouldn't you?

Microsoft is about to fire 18,000 employees. Could Microsoft afford to keep them. Yes, but its inefficient to have ex Nokia employees on payroll for no good reason. The cash flow can be redirected elsewhere.


That chart doesn't tell us enough, it doesn't explain any of the business decisions which could have lead to those figures, or explain the internal or external economical influences that caused those figures. This is why looking at revenue or assets isn't enough to measure growth.

Dent1I'm not trying to paint a rosy picture, trying to illustrate that growth can be measured in many ways.

And in what way could AMD be shown to be an expanding business? And, please no comparison of a singular range/product that previously did not exist to show some ridiculous growth from a zero point.

Dent1All companies trim their business to make it efficient.

Well, yes they do....but efficient does not equal expanding

Dent1Microsoft is about to fire 18,000 employees. Could Microsoft afford to keep them. Yes, but its inefficient to have ex Nokia employees on payroll for no good reason. The cash flow can be redirected elsewhere.

Not really the same thing. Microsoft spent $7.2+billion to get to that stage. They expanded their IP, They expanded their product base, They expanded their software reach. They expanded their brand. Which of these criteria did AMD meet when it axed its workforce ? How did AMD EXPAND as a company by selling off its assets if the money it accrues from asset sales goes into debt servicing from overpaying $2.7 billion for a previous acquisition ?
MS gobbling up Nokia has no bearing on AMD's situation. Acquisitions usually mean redundancies or moving of staff unless the newly acquired company is to be operated as a wholly independent division - but even at its most basic, you wouldn't expect the acquired company to keep its board of directors and any positions already extant in the parent company.

Dent1That chart doesn't tell us enough, it doesn't explain any of the business decisions which could have lead to those figures, or explain the internal or external economical influences that caused those figures. This is why looking at revenue or assets isn't enough to measure growth.

Well, company growth is measured by Assets (and asset vs debt), revenue, debt-to-asset and debt-to-equity ratios, market share+ ASPs, capitalization ratio, judicious financing, and increased investment.
What you seem to be saying is none of that matters, and AMD's position as an expanding company (aside from their own managements proclamation that the company is downsizing) should be taken as an article of faith. Because of what? Potential ? A complicated, unlikely, and highly subjective combinations of "Ifs"?

Dent1With the datacenter, there is no good reason to have 18 datacenters scattered around the world. They will have 1 huge datacenter in Atlanta with the same capabilities.

Well, no it won't have the same capabilities. The article clearly states that on a pure hardware basis it's a four-to-one nodal increase, but 18 down to 2 does not equal that. There is also the issues of job queues and workload sharing - although I have no idea how fully utilised the present datacenters are (and nor would anyone else outside AMD I'm guessing), so I wouldn't hazard a guess about overall efficiency, or time-sensitive workloads.

HumanSmokeAnd in what way could AMD be shown to be an expanding business? And, please no comparison of a singular range/product that previously did not exist to show some ridiculous growth from a zero point.

For one AMD has expanded it's APU Portfolio. Their APU range have "existed for years". Yet their range continues to grow.

HumanSmokeWell, no it won't have the same capabilities. The article clearly states that on a pure hardware basis it's a four-to-one nodal increase, but 18 down to 2 does not equal that. There is also the issues of job queues and workload sharing - although I have no idea how fully utilised the present datacenters are (and nor would anyone else outside AMD I'm guessing), so I wouldn't hazard a guess about overall efficiency, or time-sensitive workloads.

The article says moving the datacenter to Atlanta will qualify them for a huge government tax break. It mentions the power consumption being cheaper in Atlanta, if that isn't working more efficiently what is?

With any hardware upgrade or migration there is advantages and disadvantages. I guess job sharing and work queues is on the surface is a disadvantage, but perhaps the money saved, cash flow generated far outweighs that in the long term?

HumanSmokeWell, company growth is measured by Assets (and asset vs debt), revenue, debt-to-asset and debt-to-equity ratios, market share+ ASPs, capitalization ratio, judicious financing, and increased investment..

It's also based on current perceived value as well as an future estimated value, this is one of many external factor you're not considering.

Also, for all we know, the physical building and land plot of those 18 datacenters could have depreciated year on year, AMD could align the depreciation value against profits, but perhaps they did that for a while and are cutting their losses. Who knows? Neither of us was in the meeting.

Dent1The article says moving the datacenter to Atlanta will qualify them for a huge government tax break.

1. Everything that is business related in Georgia seems to get tax credits. The electricity subsidy ( currently at 2 megawatt/hour) Atlanta doles comes at the expense of residential electricity subscribers. Hopefully spending your way out of an economic slump works for the state...it had better.
2. And this is the important one...AMD HAD to consolidate their datacenters - their main one was housed at the Austin Campus they just sold.

Dent1It mentions the power consumption being cheaper in Atlanta, if that isn't working more efficiently what is?

Yup. Georgia residents are picking up half of AMD's electricity bill....but you still seem to be pounding that efficiency hobbyhorse. No one is debating that AMD aren't getting more efficient. The argument is whether AMD are an expanding company as you attest. Apart from adding to their APU lineup (big deal, they also EOL the previous models) you really haven't made a case that they are. Full disclosure - I used to be part of a team that put together a weekly financial result for a ten-figure yearly revenue company. I'm well aware how to interpret a companies books, and estimate goodwill.

HumanSmokeFull disclosure - I used to be part of a team that put together a weekly financial result for a ten-figure yearly revenue company. I'm well aware how to interpret a companies books, and estimate goodwill.

Didn't you recently mention your a chef.

HumanSmokeThanks. I'm a chef who learned his trade in some pretty brutal kitchens - the logo is very apt.

Just out of curiosity how does a New Zealand chef become a self proclaim expert on USA state to state tax incentive law ?

I'd like to take that course. How many hours is it and where can I find it online ?

XzibitDidn't you recently mention your a chef.

Yes I am. I previously worked in the meat processing (industrial slaughterhouses and international shipping line) and for the Ministry of Justice at various times in my working life - amongst other vocations such as writing features for tech sites. Do people where you come from stay in the same career from the day they leave school to the day they retire ? Or are they like you and class trolling tech forums as an occupation? :laugh:

XzibitJust out of curiosity how does a New Zealand chef become a self proclaim expert on USA state to state tax incentive law ?

Who needs to be an expert? - and I certainly didn't claim any such thing, so I guess you're just trolling - quelle surprise! :shadedshu: The details of Georgia's state legislation is open to anyone who can parse the information. Georgia's state tax incentive/credit legislation isn't particularly different from any other economically depressed area that is looking to attract investment.

XzibitI'd like to take that course. How many hours is it and where can I find it online ?

The fact that you can't even find the short form overview of the state's tax incentive legislation- let alone the full statute pdf leads me to believe this is way, way, way above your acumen level so don't get your hopes up. :rolleyes: The fact that you don't even know the difference between owning shares and being ownedshould be more than a subtle hint that you need to start somewhere around the pre-high school economics level. Look on the bright side, at least you got corrected on your lack of financial understanding by someone with a backround in finance rather than someone who just cooks :rockout:

HumanSmokeYes I am. I previously worked in the meat processing (industrial slaughterhouses and international shipping) and for the Ministry of Justice at various times in my working life - amongst other vocations such as writing features for tech sites. Do people where you come from stay in the same career from the day they leave school to the day they retire ? Or are they like you and class trolling tech forums as an occupation? :laugh:

Yes, If your successful at what you do. You don't get fired.

HumanSmokeThe fact that you can't even find the short form overview of the state's tax incentive legislation- let alone the full statute pdf leads me to believe this is way, way, way above your acumen level so don't get your hopes up. :rolleyes: The fact that you don't even know the difference between owning shares and being ownedshould be more than a subtle hint that you need to start somewhere around the pre-high school economics level. Look on the bright side, at least you got corrected on your lack of financial understanding by someone with a backround in finance rather than someone who just cooks :rockout:

Wow, you sure showed me. :rolleyes:

I did find this though.

eWEEK - AMD's New Atlanta Data Center Showcases Chip Maker's Technology

eWEEKSUWANEE, Ga.—Advanced Micro Devices is undergoing an aggressive data center consolidation project that is aimed at reducing the number of facilities the chip maker runs from 18 worldwide to two—one in Malaysia and the other here, in suburban Atlanta. The project began in 2012, with the goal of consolidating all the data centers in North America—located in such cities as Austin, Texas; Sunnyvale, Calif.; and Ontario, Canada—into the 153,000-square-foot Georgia facility, which used to be a trucking and storage site, according to AMD executives. They are hoping to have all those sites consolidated into the Georgia data center by mid-2015. AMD already has moved its Austin operations into the new facility, completing that part of the project in September 2013. With the move, the company was able to sell the Austin campus, take advantage of lower-cost power and tax breaks in Georgia, and save about $8.5 million annually. AMD executives said the goal is not only to save money and create a more modern and efficient data center, but also to showcase for partners and customers what can be done with AMD technology, which is used throughout the data center.

I'll let you get back to you usual grandiose AMD thread trolling or should I say culinary trolling now.:roll:


None trolling related.. PC Perspective also picked up on the tid bits I posted above about the conference call.

PC Perspective - AMD Posts Financial Results for Q2 2014

PCPerspectiveFurther, the company is currently sourcing 50% of its wafers from Global Foundries.
“Our transformation strategy is on track and we expect to deliver full year non-GAAP profitability and year-over-year revenue growth. We continue to strengthen our business model and shape AMD into a more agile company offering differentiated solutions for a diverse set of markets.”
-AMD CEO Rory Reed
AMD expects to see third quarter revenue increase by 2% (plus or minus 3%). Following next quarter, AMD will begin production of its Seattle ARM processors. Perhaps even more interesting will be 2016 when AMD is slated to introduce new x86 and GCN processors on a 20nm process.